Federation of Employers laments increase in reserve ratio

The Zambia Federation of Employers says the recent move by the Bank of Zambia to raise the statutory reserve ration from 14 percent to 18 percent is not a good move.

ZFE President Tyson Chisambo says the move has great potential to culminate into increased lending rates which are already high.

Mr Chisambo notes that while they understand that the aim is to reduce money in circulation to try and arrest the pressures on the foreign exchange demand, the same measure has an effect of reducing funds available for lending in the local market.

Mr. Chisambo says this may result in the economy shrinking at a time it needs to expand and create jobs.

He has implored government to intervene for the growth of businesses in the country which contribute largely to the economic growth.